How have new-age stocks Paytm, Zomato, Nykaa, PB Fintech performed in Q3?
New-age tech stocks such as Paytm, Zomato, PB Fintech and others’ performance on the bourses has disappointed many investors. These companies failed to spread similar magic they did in acquiring or rather reaching the wide spectrum of the user base which was reflected in their heavy price discount.
The enthusiasm that was created around the initial public offerings (IPO) of these new-age stocks seems to have faded away. The shares of these companies have seen a sharp fall from their issue price as overvaluation worries continue to upset investors. The December quarter earnings also do not paint a good picture of the future of these stocks.
Let’s have a look at how some of these prominent new-age stocks have performed in the third quarter of FY2022-2023.
One97 Communications, the parent company of the payment gateway services provider Paytm, posted a consolidated net loss of Rs 392 crore in Q3FY23 which narrowed from Rs 779 crore a year ago. The consolidated revenue rose 42% YoY to Rs 2,062 crore.
However, the company turned profitable at EBITDA or operating level three quarters ahead of its guidance. Its operating profit rose by Rs 424 crore YoY and the margin improved to 2% of revenue from -27% a year ago.
The online food delivery aggregator Zomato reported a widening of its net losses in the third quarter ended December 2022. The consolidated net loss in Q3FY23 increased to Rs 347 core from Rs 63 crore, YoY, and Rs 251 crore, QoQ. The company’s consolidated revenue from operations, however, rose 75% YoY to Rs 1,948 crore.
On a standalone basis, Zomato posted a net profit of Rs 62 crore as compared to a loss of Rs 99.3 crore a year ago. Standalone revenue rose 26.5% YoY to Rs 1,191 crore.
Nykaa’s parent company FSN E-Commerce Ventures posted a consolidated net profit of Rs 8 crore in Q3FY23, a drop of 71% from Rs 29 crore YoY. The company’s revenue from operations increased 33% on-year to Rs 1,463 crore.
At the operating level, EBITDA during the quarter under review was up 13% on-year to Rs 78 crore and margins came in at 5.3%.
PB Fintech, the parent company of Policybazaar and Paisabazaar, posted a consolidated loss of Rs 87 crore in the December quarter as against a loss of Rs 298 crore, YoY. Revenue from operations rose 66% YoY to Rs 610 crore.
The company said it remained confident of being Adjusted EBITDA positive by Q3FY23 and delivering the first full year of positive PAT in 2023-24.
In the quarter ended December 2022, the insurance company reduced its stake in 108 companies. These also include a number of large-cap companies that have witnessed a reduction of LIC’s stake.